NEWS
01/24/2018 00:36 EST | Updated 01/24/2018 00:40 EST

EU slaps chipmaker Qualcomm for abuse of market dominance

BRUSSELS — The European Union is slapping a $1.23 billion fine on U.S. chipmaker Qualcomm for abusing its market dominance in the lucrative sector.

EU Commissioner Margrethe Vestager said Wednesday San Diego-based Qualcomm "illegally shut out rivals from the market" for more than five years by paying key customer Apple on condition it would not use chips made by Qualcomm's rivals.

Vestager said Qualcomm paid "billions of dollars" to Apple.

She said payments were not only price reductions but also had the condition that Apple iPhones and iPads would exclusively use Qualcomm chips.